WallStSmart

Southern Company (SO)vsWEC Energy Group Inc (WEC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Southern Company generates 199% more annual revenue ($30.18B vs $10.08B). WEC leads profitability with a 16.2% profit margin vs 14.5%. WEC appears more attractively valued with a PEG of 2.52. WEC earns a higher WallStSmart Score of 62/100 (C+).

SO

Buy

56

out of 100

Grade: C

Growth: 4.0Profit: 7.0Value: 3.3Quality: 2.5
Piotroski: 2/9Altman Z: 0.65

WEC

Buy

62

out of 100

Grade: C+

Growth: 5.3Profit: 7.5Value: 3.3Quality: 3.0
Piotroski: 3/9Altman Z: 0.73
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

SOSignificantly Overvalued (-47.7%)

Margin of Safety

-47.7%

Fair Value

$62.70

Current Price

$92.60

$29.90 premium

UndervaluedFair: $62.70Overvalued
WECSignificantly Overvalued (-59.0%)

Margin of Safety

-59.0%

Fair Value

$71.13

Current Price

$112.95

$41.82 premium

UndervaluedFair: $71.13Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

SO3 strengths · Avg: 8.3/10
Market CapQuality
$102.01B9/10

Large-cap with strong market position

Price/BookValuation
2.8x8/10

Reasonable price relative to book value

Operating MarginProfitability
25.8%8/10

Strong operational efficiency at 25.8%

WEC2 strengths · Avg: 8.0/10
Price/BookValuation
2.7x8/10

Reasonable price relative to book value

Operating MarginProfitability
28.9%8/10

Strong operational efficiency at 28.9%

Areas to Watch

SO4 concerns · Avg: 2.3/10
Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

PEG RatioValuation
2.532/10

Expensive relative to growth rate

EPS GrowthGrowth
-0.8%2/10

Earnings declined 0.8%

Free Cash FlowQuality
$-1.72B2/10

Negative free cash flow — burning cash

WEC4 concerns · Avg: 2.5/10
Debt/EquityHealth
1.583/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
2.522/10

Expensive relative to growth rate

Altman Z-ScoreHealth
0.732/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : SO

The strongest argument for SO centers on Market Cap, Price/Book, Operating Margin.

Bull Case : WEC

The strongest argument for WEC centers on Price/Book, Operating Margin. Profitability is solid with margins at 16.2% and operating margin at 28.9%.

Bear Case : SO

The primary concerns for SO are Piotroski F-Score, PEG Ratio, EPS Growth. Debt-to-equity of 2.05 is elevated, increasing financial risk.

Bear Case : WEC

The primary concerns for WEC are Debt/Equity, Piotroski F-Score, PEG Ratio. Debt-to-equity of 1.58 is elevated, increasing financial risk.

Key Dynamics to Monitor

SO profiles as a value stock while WEC is a mature play — different risk/reward profiles.

WEC carries more volatility with a beta of 0.47 — expect wider price swings.

WEC is growing revenue faster at 9.0% — sustainability is the question.

WEC generates stronger free cash flow (401M), providing more financial flexibility.

Bottom Line

WEC scores higher overall (62/100 vs 56/100), backed by strong 16.2% margins. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Southern Company

UTILITIES · UTILITIES - REGULATED ELECTRIC · USA

Southern Company is an American gas and electric utility holding company based in the southern United States. It is headquartered in Atlanta, Georgia, with executive offices also located in Birmingham, Alabama.

WEC Energy Group Inc

UTILITIES · UTILITIES - REGULATED ELECTRIC · USA

WEC Energy Group, based in Milwaukee, Wisconsin, provides electricity and natural gas to 4.4 million customers across four states.

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